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Market Power and Monopoly

The cause of ...

Question

The cause of downfall of share market was

A

Inexperienced investors

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B

Phenomenal decrease

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C

Lack of confidence in stock market’s ability

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D

Panic amongst investors.

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Solution

The correct option is C Lack of confidence in stock market’s ability
The answer is C. The passage starts off saying that traders experienced a lack of confidence in the stock market’s ability to continue its phenomenal rise which leads to a fall in prices. Hence C is the best option.D is wrong as panic was the result of fall in prices.

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